Paul Bittar, the new chief exective at the British Horseracing Authority, ordered changes to the controversial new whip rules on Tuesday, describing the current guidelines as "fundamentally flawed".

The BHA's tough stance on the use of the whip was founded on a strict, inflexible new definition of abuse, and harsh, escalating penalties for jockeys who breached it. Neither has survived Bittar's overhaul. The stroke-count of eight on the Flat and nine over jumps which since October triggered an automatic suspension will now lead only to a review of a jockey's use of the whip in a race.

The penalty structure will also change, with one or two strokes over the limit now both classified as "lower level" breaches, with penalties of a two-day and four-day (reduced from five-day) suspension respectively. Significantly, there will also be no multiplication of penalties for repeat offences, with each breach being treated "on its merits", although a fifth "lower-level" or fourth "upper-level" offence within a six-month period will result in referral to the BHA's disciplinary panel for punishment.

The latest amendments to the BHA's whip rules will take effect tomorrow, less than three weeks before the first day of the Cheltenham Festival on 13 March. The BHA will now hope – with good reason – that whip bans will not be a frequent postscript to the sport's major races next month, as had seemed almost inevitable under its previous, rigid regime.

In a statement which accompanied the news of the changes on Tuesday night Bittar acknowledged that, "while well intentioned, and in accordance with initial requests from jockeys for clarity and consistency via a fixed number, in practice the new rules have repeatedly thrown up examples of no consideration being given to the manner in which the whip is used, as well as riders being awarded disproportionate penalties for the offence committed".

Bittar added: "The objective of this proposal is to keep jockeys riding to a similar standard as they are now with regard to their significantly reduced use of the whip but with added discretion and common sense applied by stewards when considering whether a rider is in breach of the rules."

The Professional Jockeys Association welcomed the BHA's latest amendments to the rules, and in particular the decision to no longer find riders automatically in breach for exceeding the stroke-count.

"This change recognises that a 'grey' issue cannot be proportionately and fairly regulated by a 'black and white' rule," Paul Struthers, the chief executive of the PJA, said, "and that jockeys are skilled horsemen who care passionately about horses and are being denied the ability to use their full skill and judgment throughout the course of the race.

"If this is implemented as the PJA believes is the intention, jockeys will no longer be punished for genuine, wholly unintended mistakes nor for otherwise perfectly acceptable rides."

However, David Muir, an equine consultant to the RSPCA, said on Tuesday night that the BHA's about-turn on the whip rules was "a black day for the racing industry".

"It's absolutely staggering that the BHA has taken such a clear backward step," Muir said. "Not only has the BHA failed to consult the RSPCA or other welfare groups but the decision flies in the face of scientific research which shows that excessive use of the whip increases the likelihood of falls.

"This is a black day for the racing industry but the real losers today are horses. Jockeys have effectively been given a licence to beat them with impunity. This latest move sees the preventative, punitive element of the new whip rules reduced even further, which gives us real cause for concern."